FxGrow Daily Technical Analysis â€“ 03rd Jan, 2017
By FxGrow Research & Analysis TeamEUR/USD UNDER PRESSURE YET AGAIN, US PMI IN SIGHT
EUR/USD ended 2016 and started 2017 extending bearish momentum following
strong greenback bulls today, and ECB non changed bid rate policy plus
20B cut from 80B EUR bond purchasing, which market received with
negative reaction towards the EURO following lack of confidence after UK
breaking EURO zone. Earlier, the pair opened 2017 sessions at 1.0452,
peeked to 1.0490 high, then faded away from 1.04 level, failing to guard
it, sank to 1.0390, at which the pair is currently trading. EUR/USD
collapsed today following strong US index peeking to 103.40. On the
other hand, EUR index dropped to 85.75 dropping from 86.41 top. Today,
US index will undergo a further test when US local PMI is released at
3:00 PM, published by Institute of Supply management. Also, tomorrow EUR
PMI will be published at 8:55 AM GMT. Market is ignoring EUR data and
has its eye set on US data and US index which they both have more impact
on the cable.Trend : Bearish Sideways -- The downside prevailsKey levels to watch : Weekly Pp 1.0513Fibonacci resistance levels : R1 (38.2) 1.478, R2 (50) 1.0478, R3 (61.8) 1.0511, R4 1.0590Support levels : S1 1.0372. S2 1.0351, S3 1.0322, S4 1.0295Remark : The market overall remains bearish and closing under Friday's
suggests that bear forces retain control. A close under S1 is will
encourage further selloffs. A penetration for S2 could send wash towards
S3 & S4 levels. On the other hand, a close above R4 will spark 100
Fibonacci level at 1.0651 which will spark the bullish momentum for
EUR/USD. Keep eye on US index level as it lays heavily on EUR/USD plus
today's US local PMI at 3:00 PM GMT will bring new perspectives for the
cable.For more in depth Research & Analysis please visit FxGrow.Note: This analysis is intended to provide general
information and does not constitute the provision of INVESTMENT ADVICE.
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